The European biodiesel complex has firmed since the previous report. RME (FOB ARA) increased by 2.7% to $1145 / mt (2023-11-21) compared to the 2023-11-14 price level. UCOME (FOB ARA) increased by 2.6% to $1254 / mt (2023-11-21) compared to the 2023-11-14 price level. FAME 0 (FOB ARA) increased by 3.4% to $1039 / mt (2023-11-21) compared to the 2023-11-14 price level.
Figure 1: FAME 0, RME, and UCOME for West-EU VPI prices in EUR/mt.
Market participants attribute the increase in the European biodiesel complex primarily to stronger LSGO and higher interest from the buyers’ side. Increased veg oil prices could have also contributed to the biodiesel price growth.
Vesper heard from EU-based market participants that some deals have been done for the biodiesels, including for Q1 2024. Some market players indicate that more deals in the biodiesel sector are done without broker involvement to reduce market transparency and prevent strong price growth. According to those sources, this should be benefiting some petroleum companies that could enjoy lower biodiesel prices. Furthermore, Vesper heard about improved interest in UCO in Europe. Despite improved demand, UCO prices (EXW Netherlands) have weakened since the previous report.
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